Verizon Wireless to Accept Google’s Android-Based Phones

Exactly one week after announcing it would open up its network to compatible phones and applications, Verizon Wireless on Tuesday surprised the industry once again by admitting in an interview with BusinessWeek that it will accept (and possibly sell) Google’s forthcoming Android-based cell phones.

The move now puts the company’s chief rival, AT&T, at an obvious disadvantage. Verizon’s decision to accept the phones was characterized by Lowell McAdam, Verizon’s CEO, as a necessary "enabler" that will let the wireless provider move towards a truly open platform. A Verizon Wireless representative admitted that the company may even start offering Android-based phones when they debut in the middle of 2008.

This remarkable change of heart is Verizon’s second move towards openness in a week. Last week, the company announced that it would be opening its network to any “compatible” phones, not just those sold by Verizon. Some observers think that these moves will give Verizon Wireless an edge in the upcoming 700 MHz auction, and it may also be a case of opting for openness before regulatory mandates eventually force it on the wireless market — whether carriers like it or not.

"It gets them out ahead of regulators who might force open networks, but on less favorable terms," said Avi Greengart, principal analyst at Current Analysis, referring to Verizon’s announcement last week. "If Google’s Android takes off, and Verizon gets Android on their network, it could also mean the company sees a whole host of new services," he continued. "The hope is that there are going to be a whole new range of devices and apps that the carriers can’t really predict in their central planning, mass market business models."

Android, the open source, Linux-based mobile OS Google and its Open Handset Alliance partners are working on will ultimately help the Verizon Wireless offer these new open services and devices, according McAdam. It will also undoubtedly put even more pressure on AT&T, as three out of the four major U.S. carriers have now embraced the OHA.

For its own part, AT&T has said it will wait to see how Android shapes up before committing. EPICENTER recently spoke to an AT&T representative who said there are still a handful of outstanding questions that need to be answered before the company joins the open alliance.

CORRECTION: This story was edited to reflect the fact that Verizon has not publicly stated it will join the OHA. A Verizon Wireless representitive would only confirm that the company will accept Android-based phones, but not its ultimate standing within the larger alliance.